The 10-second takeaway
For the quarter ended July 2 (Q2), BJ's Restaurants missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank. GAAP earnings per share shrank.
Margins dropped across the board.
BJ's Restaurants reported revenue of $198.5 million. The 16 analysts polled by S&P Capital IQ expected revenue of $202.4 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $180.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.31. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. Non-GAAP EPS of $0.31 for Q2 were 3.1% lower than the prior-year quarter's $0.32 per share. GAAP EPS of $0.30 for Q2 were 3.2% lower than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 19.7%, 70 basis points worse than the prior-year quarter. Operating margin was 6.2%, 100 basis points worse than the prior-year quarter. Net margin was 4.3%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $199.2 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $798.6 million. The average EPS estimate is $1.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 454 members out of 500 rating the stock outperform, and 46 members rating it underperform. Among 208 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 196 give BJ's Restaurants a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BJ's Restaurants is outperform, with an average price target of $39.07.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool recommends BJ's Restaurants. The Motley Fool owns shares of BJ's Restaurants. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.